ITOCHU to Acquire Stake in IAG Engine Tech, Entering Narrowbody Engine MRO Market

ITOCHU Corporation has signed an agreement with Iberia to acquire a minority stake in IAG Engine Tech (IET), a Madrid-based aircraft engine maintenance company established in 2026, marking the Japanese trading group’s first investment in narrowbody aircraft engine maintenance, repair and overhaul (MRO).

IAG Engine Tech, established by Iberia under International Airlines Group (IAG), will provide engine maintenance services to IAG airlines while expanding its third-party customer business internationally.

The company builds on more than 50 years of engine maintenance experience at Iberia Maintenance in Madrid, with existing capabilities covering V2500, CFM56 and Pratt & Whitney PW1100G-JM geared turbofan engines.

Beginning in early 2027, IAG Engine Tech plans to introduce CFM LEAP engine maintenance services under the LEAP Premier MRO license secured by IAG. The expansion will position the company to support growing demand for maintenance of next-generation narrowbody engines.

ITOCHU said the investment extends its existing aviation activities, including aircraft leasing and engine-related aftermarket services, into direct participation in engine MRO operations.

The transaction also expands ITOCHU’s longstanding commercial relationship with Iberia and IAG, providing opportunities to combine its aviation investment experience and customer network with IET’s technical capabilities.

The companies did not disclose the investment amount, percentage ownership to be acquired or expected transaction completion date.